International Paper 2012 Annual Report Download - page 52

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• a $32 million charge before taxes ($19 million
after taxes) for costs related to the early
extinguishment of debt (see Note 12 Debt and
Lines of Credit on pages 72 and 73 of Item 8.
Financial Statements and Supplementary Data),
• an $18 million charge before taxes ($12 million
after taxes) related to International Paper’s
acquisition of a majority share of APPM in India,
and
• a $5 million charge before taxes ($2 million after
taxes) for other items.
In addition, restructuring and other charges totaling
$47 million before taxes ($33 million after taxes)
were recorded in the Industrial Packaging, Printing
Papers, Consumer Packaging and Distribution
industry segments including:
• a $20 million charge before taxes ($12 million
after taxes) for costs associated with the signing
of an agreement to acquire Temple-Inland,
• a $24 million gain before taxes ($15 million after
taxes) related to a change in the estimate of
closure costs related to the Franklin, Virginia mill
due to the Company’s decision to repurpose a
portion of the mill to produce fluff pulp,
• a $49 million charge before taxes ($34 million
after taxes) for restructuring costs related to the
Company’s xpedx business, and
• a $2 million charge before taxes ($2 million after
taxes) for other items.
2010: During 2010, corporate restructuring and other
charges totaling $52 million before taxes ($32 million
after taxes) were recorded. These charges included:
• a $35 million charge before taxes ($21 million
after taxes) for costs related to the early
extinguishment of debt (see Note 12 Debt and
Lines of Credit on pages 72 and 73 of Item 8.
Financial Statements and Supplementary Data),
• an $11 million charge before taxes ($7 million
after taxes) related to the write-off of an Ohio
commercial activity tax receivable, and
• a $6 million charge before taxes ($4 million after
taxes) for severance and benefit costs associated
with the Company’s S&A reduction initiative.
In addition, restructuring and other charges totaling
$342 million before taxes ($210 million after taxes)
were recorded in the Industrial Packaging, Printing
Papers and Consumer Packaging industry segments
including:
• a $315 million charge before taxes ($192 million
after taxes), including $236 million of noncash
accelerated depreciation charges, for closure
costs related to the Franklin, Virginia mill,
• an $8 million charge before taxes ($5 million
after taxes) related to the reorganization of the
Company’s Shorewood Packaging operations,
• a $7 million charge before taxes ($4 million after
taxes) related to the closure of the Bellevue,
Washington container facility, and
• a $12 million charge before taxes ($9 million
after taxes) for other items.
Impairments of Goodwill
No goodwill impairment charges were recorded in
2012, 2011 or 2010.
Net Losses (Gains) on Sales and Impairments
of Businesses
Net losses (gains) on sales and impairments of busi-
nesses included in special items totaled a pre-tax
loss of $86 million ($87 million after taxes) in 2012, a
pre-tax loss of $218 million (a gain of $36 million
after taxes and noncontrolling interests) in 2011 and
a pre-tax gain of $23 million ($13 million after taxes)
in 2010. The principal components of these gains/
losses were:
2012: As referenced in Note 5 Acquisitions and
Joint Ventures on pages 57 through 60 in Item. 8
Financial Statements and Supplementary Data, on
July 2, 2012, International Paper finalized the sales of
its Ontario and Oxnard (Hueneme), California
containerboard mills to New-Indy Containerboard
LLC, and its New Johnsonville, Tennessee
containerboard mill to Hood Container Corporation.
During 2012, the Company recorded pre-tax charges
of $29 million ($55 million after taxes) for costs
associated with the divestitures of these mills. Also
during 2012, in anticipation of the divestiture of the
Hueneme mill, a pre-tax charge of $62 million ($38
million after taxes) was recorded to adjust the long-
lived assets of the mill to their fair value.
2011: On August 22, 2011, International Paper
announced that it had signed an agreement to
sell its Shorewood business to Atlas Holdings. As
a result, during 2011, net pre-tax charges of $207
million (after a $246 million tax benefit and a
gain of $8 million related to a noncontrolling
interest, a net gain of $47 million) were recorded
to reduce the carrying value of the Shorewood
business to fair market value. As part of the
25